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Pulse Electronics Reports Q1

PHILADELPHIA, Pa. — Pulse Electronics Corporation (NYSE:PULS), a leading provider of electronic components, today reported results for its first quarter ended April 1, 2011.

First Quarter Summary

  • Net sales were $88 million compared with $92.9 million in the prior-year quarter.
  • Operating loss according to U.S. GAAP was $10.3 million in the quarter compared with a loss of $30.4 million in the prior-year quarter.
  • Non-GAAP operating loss was $2.9 million in the quarter compared with a non-GAAP loss of $1.6 million in the prior-year quarter. (The non-GAAP operating losses exclude severance, impairment and associated costs; non-cash stock-based compensation expenses; accelerated depreciation; and costs associated with an unsolicited takeover attempt in applicable fiscal periods. See Schedule A for a reconciliation of U.S. GAAP results to non-GAAP measures.)
  • The non-GAAP operating loss in the first quarter of 2011 included approximately $1 million of costs related to a) dual overhead associated with the closure of two factories in China and the related migration to lower-cost existing facilities in China and b) operating costs of audio product lines that were eliminated at the end of the quarter.
  • U.S. GAAP diluted loss per share from continuing operations was $0.12 in the quarter compared with a loss of $0.88 in the prior-year quarter.
  • Non-GAAP diluted earnings per share from continuing operations were $0.01 in the quarter compared with a non-GAAP loss of $0.24 in the prior-year quarter. CEO Comments
    “We focused our efforts on our strategic turnaround plan and delivered strong progress on our cost and expense reduction efforts in the quarter,” said Pulse Chairman and Chief Executive Officer Ralph Faison. “Our first quarter financial performance was in line with our guidance. Sales were $88 million and non-GAAP operating loss was $2.9 million. Both were in the range we provided in February and the underlying drivers were largely consistent with our views. We experienced strong demand in our power segment. In our network segment, we experienced lower overall demand industry wide as certain customers are working through existing inventory built in 2010. Our wireless sales were consistent with our outlook and reflected a decline in sales from a major OEM that changed its sourcing strategy, which was partially offset by strong year-over-year growth in sales from new antenna customers. “As we look forward we are encouraged by our progress on our strategic turnaround plan. During the quarter we:
  • took actions that are expected to generate annual cost and expense savings of approximately $6.6 million with the effects to begin in the second quarter of 2011 and the full effect in the third quarter of 2011
  • generated $6.7 million in sales from new antenna customers and secured 32 wireless design wins
  • closed two factories in higher-cost coastal China as part of our efforts to optimize our manufacturing footprint and
  • hired a new chief information officer with a demonstrated track record of implementing ERP systems.”

    Read the full press release.

    {complink 12973|Pulse Electronics Corp.}

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